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Production of the 1965 Mustang (VIN coded by Ford and titled as 1965 models[8]) began in Dearborn, Michigan on March 9, 1964[9] and the car was introduced to the public on April 17, 1964[10] at the New York World's Fair.[11] It is Ford's third oldest nameplate[citation needed] currently in production next to the F-Series pickup truck line (which has undergone major nameplate changes over the years) and the Falcon that is still in production in Australia.

Executive stylist John Najjar, who was a fan of the World War II P-51 Mustang fighter plane, is credited by Ford to have suggested the name.[12] He was involved in design work on the prototype Ford Mustang I. An alternative view was that Robert J. Eggert, Ford Division market research manager, first suggested the Mustang name. Eggert, a breeder of quarterhorses, received a birthday present from his wife of the book, The Mustangs by J. Frank Dobie in 1960. Later, the book’s title gave him the idea of adding the “Mustang” name for Ford’s new concept car. The designer preferred Cougar or Torino (and an advertising campaign using the Torino name was actually prepared), while Henry Ford II wanted T-bird II.[13] As the person responsible for Ford’s research on potential names, Eggert added “Mustang” to the list to be tested by focus groups; “Mustang,” by a wide margin, came out on top under the heading: “Suitability as Name for the Special Car.”[14][15] The name could not be used in Germany,[16] however, because it was owned by Krupp, which had manufactured trucks between 1951 and 1964 with the name Mustang. Ford refused to buy the name for about US$10,000 from Krupp at the time. Kreidler, a manufacturer of mopeds, also used the name, so Mustang was sold in Germany as the "T-5" until December 1978.

Mustangs grew larger and heavier with each model year until, in response to the 1971–1973 models, Ford returned the car to its original size and concept for 1974. It has since seen several platform generations and designs. Although some other pony cars have seen a revival, the Mustang is the only original pony car to remain in uninterrupted production over four decades of development and revision.[17]

As Lee Iacocca's assistant general manager and chief engineer, Donald N. Frey was the head engineer for the T-5 project—supervising the overall development of the car in a record 18 months[18][19]—while Iacocca himself championed the project as Ford Division general manager. The T-5 prototype was a two-seat, mid-mounted engine roadster. This vehicle employed the German Ford Taunus V4 engine and was very similar in appearance to the much later Pontiac Fiero.

It was claimed that the decision to abandon the two-seat design was in part due to the low sales experienced with the 2-seat 1955 Thunderbird. To broaden market appeal it was later remodeled as a four-seat car (with full space for the front bucket seats, as originally planned, and a rear bench seat with significantly less space than was common at the time). A "Fastback 2+2" model traded the conventional trunk space for increased interior volume as well as giving exterior lines similar to those of the second series of the Corvette Sting Ray and European sports cars such as the Jaguar E-Type. The "Fastback 2+2" was not available as a 1964½ model, but was first manufactured on August 17, 1964.

The new design was styled under the direction of Project Design Chief Joe Oros and his team of L. David Ash, Gale Halderman, and John Foster[20][21]—in Ford's Lincoln–Mercury Division design studios, which produced the winning design in an intramural design contest instigated by Iacocca.

Favorable publicity articles appeared in 2,600 newspapers the next morning, the day the car was "officially" revealed.[22][23] A Mustang also appeared in the James Bond film Goldfinger in September 1964, the first time the car was used in a movie.[24]

To cut down the development cost and achieve a suggested retail price of US$2,368, the Mustang was based heavily on familiar yet simple components, many of which were already in production for other Ford models. Many (if not most) of the interior, chassis, suspension, and drivetrain components were derived from those used on Ford's Falcon and Fairlane. This use of common components also shortened the learning curve for assembly and repair workers, while at the same time allowing dealers to pick up the Mustang without also having to spend massive amounts of money on spare parts inventories to support the new car line.

Original sales forecasts projected less than 100,000 units for the first year.[25] This mark was surpassed in three months from rollout.[26] Another 318,000 would be sold during the model year (a record),[27] and in its first eighteen months, more than one million Mustangs were built.[25] Several changes were made at the traditional opening of the new model year (beginning August 1964), including the addition of back-up lights on some models, the introduction of alternators to replace generators, and an upgrade of the V8 engine from 260 cu in (4.3 l) to 289 cu in (4.7 l) displacement. In the case of at least some six-cylinder Mustangs fitted with the 101 hp (75 kW) 170 cu in (2.8 l) Falcon engine, the rush into production included some unusual quirks, such as a horn ring bearing the 'Ford Falcon' logo beneath a trim ring emblazoned with 'Ford Mustang.' These characteristics made enough difference to warrant designation of the 121,538 earlier ones as "1964½" model-year Mustangs, a distinction that has endured with purists.[28]

All of the features added to the "1965" model were available as options or developmental modification to the "1964½" model, which in some cases led to "mix-and-match" confusion as surprised Ford execs hurriedly ramped up production by taking over lines originally intended for other car models' 1965 years. Some cars with 289 engines which were not given the chrome fender badges denoting the larger engine, and more than one car left the plant with cutouts for back-up lights but no lights nor the later wiring harness needed to operate them. While these would today be additional-value collectors' items, most of these oddities were corrected at the dealer level, sometimes only after buyers had noticed them. The 1966 model was basically unchanged, but featured revised side scoops, grill and gas cap, as well as the deletion of the four bars protruding from the Mustang emblem in the grille. The Falcon-based instrument cluster was replaced with a sportier unit designed specially for the Mustang.

For 1967, the Mustang retained the original body structure but styling was refreshed, giving the Mustang a more massive look overall. Front and rear end styling was more pronounced, and the "twin cove" instrument panel offered a thicker crash pad, and larger gauges. Hardtop, fastback and convertible body styles continued as before. A host of Federal safety features were standard that year, including an energy-absorbing steering column and wheel, 4-way emergency flashers, and softer interior knobs. For 1968 models, the 1967 body style continued, but with revised the side scoops, steering wheel, and gas caps. Side marker lights were also added that year, and cars built after January 1, 1968 included shoulder belts for both front seats. The '68 models also introduced a new V8 engine, the 302. This small-block engine was designed for Federal emissions standards that were to take effect, and ended up being used in large number of other Ford vehicles for many decades.

For 1969 and 1970 models, the Mustang received a larger body, a more aggressive stance, and a wider grille. '69 models featured "quad headlamps" which disappeared to make way for an even wider grille in the '70 models. A variety performance and decorative options were available including functional (and non-functional) air scoops, cable and pin hood tie downs, and both wing and chin spoilers. Additionally, the Boss 302 and 429 models were introduced to homologize the engines.

Continually popular through the early seventies, the original "pony car" became even larger for '71 through '73; some considered it overweight. Despite the availability of a big-block 429 cubic-inch V8 engine, and a corresponding swift power-to-weight ratio, change would come to the corral...

Lee Iacocca, who had been one of the forces behind the original Mustang, became President of Ford Motor Company in 1970 and ordered a smaller, more fuel-efficient Mustang for 1974. Initially it was to be based on the Ford Maverick, but ultimately was based on the Ford Pinto subcompact.

The new model, called the "Mustang II", was introduced two months before the first 1973 oil crisis, and its reduced size allowed it to compete against imported sports coupés such as the Japanese Toyota Celica and the European Ford Capri[citation needed] (then Ford-built in Germany and Britain, sold in U.S. by Mercury as a captive import car). First-year sales were 385,993 cars, compared with the original Mustang's twelve-month sales record of 418,812.[29]

Lee Iacocca wanted the new car, which returned the Mustang to its 1964 predecessor in size, shape, and overall styling,[30] to be finished to a high standard, saying it should be "a little jewel."[31] However not only was it smaller than the original car, but it was also heavier, owing to the addition of equipment needed to meet new U.S. emission and safety regulations. Performance was reduced, and despite the car's new handling and engineering features the galloping mustang emblem "became a less muscular steed that seemed to be cantering."[32]

The car was available in coupé and hatchback versions, including a "luxury" Ghia model designed by Ford's rececently acquired Ghia of Italy. Changes introduced in 1975 included reinstatement of the 302 CID V8 option (after being without a V8 option for the 1974 model year) and availability of an economy option called the "MPG Stallion". Other changes in appearance and performance came with a "Cobra II" version in 1976 & 1977 and a "King Cobra" in 1978.

The 1979 Mustang was based on the longer Fox platform (initially developed for the 1978 Ford Fairmont and Mercury Zephyr). The interior was restyled to accommodate four people in comfort despite a smaller rear seat.
Body styles included a coupé, (notchback), hatchback, and convertible. Available trim levels included L, GL, GLX, LX, GT, Turbo GT (1983–84), SVO (1984–86), Cobra (1979–81; 1993), and Cobra R (1993).

In response to slumping sales and escalating fuel prices during the early 1980s, a new Mustang was in development. It was to be a variant of the Mazda MX-6 assembled at AutoAlliance International in Flat Rock, Michigan. Enthusiasts wrote to Ford objecting to the proposed change to a front-wheel drive, Japanese-designed Mustang without a V8 option. The result was a major facelift of the existing Mustang in 1987, while the MX-6 variant became the 1989 Ford Probe.

In 1994 the Mustang underwent its first major redesign in fifteen years. Code-named "SN-95" by the automaker, it was based on an updated version of the rear-wheel drive Fox platform called "Fox-4." The new styling by Patrick Schiavone incorporated several styling cues from earlier Mustangs.[33] For the first time since 1974, a hatchback coupe model was unavailable.

The base model came with a 3.8 OHVV6 (232 cid) engine rated at 145 bhp (108 kW) in 1994 and 1995, or 150 bhp (110 kW) (1996–1998), and was mated to a standard 5-speed manual transmission or optional 4-speed automatic. Though initially used in the 1994 and 1995 Mustang GT, Ford retired the 302 cid pushrod small-block V8 after nearly 40 years of use, replacing it with the newer Modular 4.6 L (281 cid) SOHC V8 in the 1996 Mustang GT. The 4.6 L V8 was initially rated at 215 bhp (160 kW), 1996–1997, but was later increased to 225 bhp (168 kW) in 1998.[34]

For 1999, the Mustang received Ford's New Edge styling theme with sharper contours, larger wheel arches, and creases in its bodywork, but its basic proportions, interior design, and chassis remained the same as the previous model. The Mustang's powertrains were carried over for 1999, but benefited from new improvements. The standard 3.8 L V6 had a new split-port induction system, and was rated at 190 bhp (140 kW) 1999–2004,[35] while the Mustang GT's 4.6 L V8 saw an increase in output to 260 bhp (190 kW) (1999–2004), due to a new head design and other enhancements. There were also three alternate models offered in this generation: the 2001 Bullitt, the 2003 and 2004 Mach 1, as well as the 320 bhp (240 kW) 1999 & 2001,[36][37] and 390 bhp (290 kW) 2003–2004[38]Cobra.

For the 2005 to 2009 production years, the base model was powered by a 210 hp (157 kW) cast-iron block 4.0 L SOHC V6, while the GT used an aluminum block 4.6 L SOHC 3-valveModular V8 with variable camshaft timing (VCT) that produced 300 hp (224 kW). Base models had a Tremec T-5 5-speed manual transmission with Ford's 5R55S 5-speed automatic being optional. Automatic GTs also featured this transmission, but manual GTs had the Tremec TR-36505-speed.[40]

Ford announced in July, 2007 that all 2008 Mustangs would have seats containing material derived from soybeans.[41] A new option for the 2009 Mustang was a $1,995 glass roof.[42]

The 2010 model year Mustang was released in the spring of 2009 with a redesigned exterior and a reduced drag coefficient of 4% on base models and 7% on GT models.[43] The engine for base Mustangs remained unchanged, while GTs 4.6 L V8 was revised resulting in 315 hp (235 kW) at 6000 rpm and 325 lb·ft (441 N·m) of torque at 4255 rpm.[44] Other mechanical features included new spring rates and dampers, traction and stability control system standard on all models, and new wheel sizes.

The Shelby GT500's 5.4 L supercharged V8 block was made of aluminum making it 102 lb (46 kg) lighter than the iron units in previous years. It was rated at 550 hp (410 kW) and 510 lb·ft (690 N·m) of torque.[47]

The same year, Mustangs achieved the first of many notable competition successes, winning first and second in class in the Tour de France international rally. The car’s American competition debut, also in 1964, was in drag racing, where private individuals and dealer-sponsored teams campaigned Mustangs powered by 427 cu. in. V8s.

In late 1964, Ford contracted Holman & Moody to prepare ten 427-powered Mustangs to contest the National Hot Rod Association's (NHRA) A/Factory Experimental class in the 1965 drag racing season. Five of these special Mustangs made their competition debut at the 1965 NHRA Winternationals, where they qualified in the Factory Stock Eliminator class. The car driven by Bill Lawton won the class.[48]

A decade later Bob Glidden won the Mustang’s first NHRA Pro Stock title.

Early Mustangs also proved successful in road racing. The GT 350 R, the race version of the Shelby GT 350, won five of the Sports Car Club of America's (SCCA) six divisions in 1965. Drivers were Jerry Titus, Bob Johnson and Mark Donohue, and Titus won the (SCCA) B-Production national championship. GT 350s won the B-Production title again in 1966 and 1967. They also won the 1966 manufacturers’ championship in the inaugural SCCA Trans-Am series, and repeated the win the following year.[12]

In 1969, modified versions of the 428 Mach 1, Boss 429 and Boss 302 took 295 United States Auto Club-certified records at Bonneville Salt Flats. The outing included a 24-hour run on a 10-mile (16 km) course at an average speed of 157 miles per hour (253 km/h). Drivers were Mickey Thompson, Danny Ongais, Ray Brock and Bob Ottum.[12]

In 1970, Mustang won the SCCA Trans-Am series manufacturers’ championship again, with Parnelli Jones and George Follmer driving for car owner/builder Bud Moore and crew chief Lanky Foushee. Jones won the "unofficial" drivers’ title. 1970 was of special significance as the only year that all the "pony" car manufacturers fielded "factory" teams with world-class drivers... Ford beat Chevrolet, Pontiac, Plymouth, Dodge and AMC.

Two years later Dick Trickle won 67 short-track oval feature races, a national record for wins in a single season.

In 1975 Ron Smaldone's Mustang became the first-ever American car to win the Showroom Stock national championship in SCCA road racing.

Mustangs also competed in the IMSA GTO class, with wins in 1984 and 1985. In 1985 John Jones also won the 1985 GTO drivers’ championship; Wally Dallenbach Jr., John Jones and Doc Bundy won the GTO class at the Daytona 24 Hours; and Ford won its first manufacturers’ championship in road racing since 1970. Three class wins went to Lynn St. James, the first woman to win in the series.

1986 brought eight more GTO wins and another manufacturers’ title. Scott Pruett won the drivers’ championship. The GT Endurance Championship also went to Ford.

In 1987 Saleen Autosport Mustangs driven by Steve Saleen and Rick Titus won the SCCA Escort Endurance SSGT championship, and in International Motor Sports Association (IMSA) racing a Mustang again won the GTO class in the Daytona 24 hours. In 1989, its silver anniversary year, the Mustang won Ford its first Trans-Am manufacturers’ title since 1970, with Dorsey Schroeder winning the drivers’ championship.[49]

In 1997, Tommy Kendall’s Roush-prepared Mustang won a record 11 consecutive races in Trans-Am to secure his third straight driver’s championship.

In 2002 John Force broke his own NHRA drag racing record by winning his 12th national championship in his Ford Mustang Funny Car, Force beat that record again in 2006, becoming the first ever 14-time champion, again, driving a Mustang.[12]

Currently Mustangs compete in several racing series, including the Mustang Challenge for the Miller Cup and the KONI Challenge, where it won the manufacturer's title in 2005 and 2008, and the Canada Drift, Formula Drift and D1 Grand Prix series. They are highly competitive in the SCCA World Challenge, with Brandon Davis winning the 2009 GT driver's championship.

As reported by Jayski.com, the Ford Mustang will be Ford's Car of Tomorrow for the NASCAR Nationwide Series in 2010, opening a new chapter in both Mustang's history and Ford's history. NASCAR insiders expect to see Mustang racing in NASCAR Sprint Cup by 2014 (the model's 50th anniversary). Unlike other racing series, the NASCAR vehicles are not based on production Mustangs, but are a silhouette racing car with decals that give them a superficial resemblance to the production road cars. Carl Edwards won the first ever race with a NASCAR prepped Mustang on April 8, 2011 at the Texas Motor Speedway.